Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Message: Re: Buckshot, please reply...bman
3
Dec 30, 2007 04:08PM

 

At this point I think you have to start putting yourself into the position of the buying company.  By this I mean that if you think we can get 200 per ounce for the project that means the purchaser is paying 200 per ounce for it.

This means that his total cost per ounce to get the gold out of the ground and sold just went up by $ 200 per ounce before he even starts digging...If it would take $ 400 to $ 500 cash costs plus overhead to get the gold out of the ground and sell it you now have a total cost of $600 to $ 700 per ounce.  With the great increases in cash costs companies have been experiencing over the last year I am not sure$ 400 to $ 500 is a good figure anymore.

 Would a Newmont or Barrick etc. take a chance?  Any company buying the FDN project will figure out what it is going to cost them to get the gold out of the ground since we are now looking at capping the gold price they can get because of the windfall profits tax.

When they figure all this out they will determine what they can pay for the FDN project....the blue sky has been shut down or at least curtailed with the latest developments. 

This, if not changed, will have a serious affect on the share price of ARU. 

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